Retained Earnings and Your Business Sale
When you are preparing to sell your business, few balance sheet items are as misunderstood yet as powerful as retained earnings.
While many owners focus heavily on revenue and EBITDA, retained earnings quietly shape how buyers interpret the financial maturity, discipline, and long term value of your company.
Understanding how retained earnings work and how buyers read them can make a meaningful difference in your final sale price.
If you want expert guidance on positioning your financials before a sale, the team at Elkridge Advisors is here to help.
FCF Formula Explained for Business Owners Planning an Exit
As a senior advisor at Elkridge Advisors, I often tell sellers that very few financial metrics shape buyer perception as strongly as the fcf formula.
Free cash flow is not just a number on a spreadsheet.
It is a direct signal of how much real money your business can generate for a buyer after keeping the lights on and funding growth.
If you want help positioning your free cash flow the right way before going to market, reach out to Elkridge Advisors and let us guide you through the process.
Understanding Discrete Probability Distribution in Business Valuation
When selling your business, you probably think about profit, revenue, and maybe even EBITDA. But one concept that can quietly make a big difference in how buyers view your company is discrete probability distribution. It sounds technical, but once you understand it, you’ll see how it helps predict your company’s potential, and how to present […]
Liquidity Ratio: Why It Matters When You’re Selling Your Business
When you decide to sell your business, numbers tell a story.
Among those numbers, the liquidity ratio speaks volumes about how healthy and prepared your company is.
Buyers look closely at it because it shows your ability to meet short-term obligations and keep operations running smoothly.
As a seller, understanding and improving this ratio can directly influence how much buyers are willing to pay.
If you want expert eyes on your liquidity ratio before selling, reach out to Elkridge Advisors. We help sellers like you turn strong financials into stronger deals.
How to Price a Business for Sale: Getting the Best Deal
Selling a business can be one of the most emotional and financially significant decisions an owner makes.
The challenge lies not only in finding a buyer but in determining what your company is truly worth.
Get it wrong, and you risk leaving money on the table, or scaring away potential buyers altogether.
Let’s walk through how to price a business for sale the right way.
Enterprise Value and Why It Matters When Selling Your Business
If you’re thinking about selling your business, you’ve probably heard people talk about enterprise value.
It’s one of those terms that sounds technical but is actually one of the most important numbers you’ll ever need to understand before a sale.
Enterprise value, often called EV, shows what your business is really worth, not just on paper, but in the eyes of a buyer.
It’s the number that represents your company’s total value, including what you own, what you owe, and the cash you have.
In simple terms, it’s what someone would actually need to pay to buy your business completely.
Understanding this number gives you an edge in negotiations and helps you get the best possible deal when it’s time to exit.
Standard Error: The Hidden Metric That Sharpens Business Valuations
When you are preparing to sell your business, precision matters.
Small errors in financial forecasts can lead to big valuation differences.
One of the most overlooked yet powerful tools in financial analysis is the standard error.
Understanding what it means, how it is calculated, and how it affects your sale price can help you negotiate confidently and secure a better deal.
The Importance of Current Ratio When Selling Your Business
When you are preparing to sell your business, understanding your financial health becomes crucial.
Among the many financial metrics buyers evaluate, the current ratio is one of the most telling indicators of short-term stability and liquidity.
In simple terms, it shows whether your business can pay its bills on time. and that says a lot to potential buyers.
The Connection Between Retained Earnings and Investor Confidence in M&A
In this article we’ll look at how additional paid-in capital and retained earnings complement each other to paint a complete picture of a company’s financial health.
You’ll learn why both matter when assessing value, how they influence deal strategy, and how Elkridge Advisors helps clients interpret these figures to make smarter buying and selling decisions.
